Regulatory Alerts2026-08-26
Added
Circular to Credit Institutions on Dividend Distributions
Dividend distributions by credit institutions are assessed on a case-by-case basis, and no additional regulatory requirements are introduced. While formal written notification to Banking Supervision prior to distribution is not mandatory, it is considered good practice to submit such notice accompanied by information underpinning the proposal, including Board materials and capital position analysis referencing CET1, Tier 1, and Total Capital ratios. During the assessment period, the institution should immediately notify the Authority of material changes to assumptions or capital position, and any submitted documentation shall be provided at both solo and consolidated levels as applicable. The Authority reserves the right to request additional information under Article 19(1)(b) of the Banking Act (Chapter 371 of the Laws of Malta) and may impose specific restrictions on dividends.
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